There’s a common expression amongst successful investors and developers:
You make your money when you buy.
With this in mind here are 5 Things You Need To Know Before Buying Your Next Property.
Beware of property investment seminars, property marketers, accountants and financial planners with an agenda.
Try and understand their motives and the financial incentives they receive before implementing their advice.
1. Always do your own research
Build a network of advisors you can trust and inspect each property yourself.
2. Look for high rental demand
Buy in areas that are close to schools, public transport and shops as they are the biggest draw cards for tenants.
Find areas where demand out weighs supply and look for suburbs with vacancy rates under 1.5%.
3. Buy features not finishes
It’s difficult not to get emotional when you see a well-renovated property.
But it’s important to remember that bedrooms, bathrooms and car spaces are more important that quality finishes.
4. Check condition and age
Look out for lower maintenance properties. Continuous maintenance will not only swallow your income, but also take your attention off your next deal.
Newer properties also come with depreciation advantages.
5. Choose a reputable property manager
It’s not worth sacrificing quality when selecting a property manager.
Remember that poor placement procedures and poor management will end up costing you thousands of dollars in the long term.